Cornerstone Propane Partners, L.P. Reports 70% Increase in Earnings Before Interest, Taxes, Depreciation and Amortization For the First Quarter of Fiscal 2000.WATSONVILLE Watsonville, city (1990 pop. 31,099), Santa Cruz co., W Calif., on the Pajaro River near Monterey Bay; founded 1852, inc. 1868. It is a growing trade and processing center for vegetables, fruits, and flowers. , Calif.--(BUSINESS WIRE)--Nov. 2, 1999-- Cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to Propane Partners, L.P. (NYSE NYSE See: New York Stock Exchange : CNO CNO abbr. chief of naval operations ), ("Cornerstone" or the "Partnership"), today reported earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Revenue for the quarter increased to $556.5 million, up $386.5 million over the $170.0 reported for the same quarter of last year. This increase was due primarily to incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. Coast Energy Group ("CEG (Continuous Edge Graphics) A VGA RAMDAC chip from Edsun Labs that adds anti-aliasing on the fly. It can also calculate intermediate shades, thus providing thousands of colors on an 8-bit board that normally generates only 256 colors. ") sales volumes and revenues (approximately $372.7 million) and increased retail sales activity (approximately $13.8 million). Recent CEG acquisitions have continued the Partnership's ongoing strategic focus to increase its non-retail sales activities, providing incremental cash flow and a better balance of business with the retail operations which are more dependent on a normal winter heating season. "Cornerstone continues to lead the industry with both increased market share in existing markets and acquisitions into new geographical markets," said Keith G. Baxter, chief executive officer. "In addition, our continued focus on basic execution of fundamental business practices has increased our EBITDA per unit and gross margin per employee." Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter totaled $33.4 million, an increase of $7.7 million (approximately 30%) over the same quarter last year. This increase was related to the 22 acquisitions consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. by the Partnership over the past year, the largest of which was the purchase of Propane Continental, Inc. (formerly the nation's 19th largest propane company) in December 1998. These acquisitions should position the Partnership well for the upcoming heating season. First quarter retail sales volumes of 46.4 million gallons represented an increase of 7.0 million gallons (about 18%) over the 39.4 million gallons reported for the same period last year. This increase reflects the continuing contributions from acquisitions and the Partnership's internal customer growth strategy. During this low volume retail sales quarter, Cornerstone was able to increase the average EBITDA per retail gallon gallon: see English units of measurement. by $.01, approximately 42% over the quarter ended September 30, 1998. Depreciation and amortization expense increased by $3.0 million to $8.1 million from $5.1 million last year. Interest expense for the quarter increased by $3.2 million to $8.3 million from $5.1 million for the same quarter last year. These increases reflect the higher expenses associated with the acquisitions completed over the last twelve months. The net loss for the first quarter was consistent with the seasonal nature of the company and industry results, totaling $14.9 million, or approximately $.62 per unit. This compares to the $9.3 million loss, about $.46 per unit, reported for the same quarter of last year. The increased operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the current quarter was directly related to higher depreciation, amortization and interest expenses associated with acquisitions consummated this past year. EBITDA for the quarter was up $.02 per unit to $.07 per equivalent common unit, as compared to $.05 for the quarter ended September 30, 1998. Cornerstone Propane Partners, L.P. and consolidated subsidiaries condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statements of operations for the quarters ended September 30, 1999 and 1998, and the consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. as of the same dates are presented below. Figures are in thousands of dollars, except per unit figures. -0-
Cornerstone Propane Partners, L.P.
Financial Results of Operations for the Quarters Ended
September 30, 1999 and 1998
(Unaudited)
1999 1998
Revenues $556,527 $169,991
Cost and expenses:
Cost of sales 521,435 143,292
Operating, SG&A expenses 33,382 25,681
Depreciation and amortization 8,169 5,122
Income (loss) from operations (6,459) (4,104)
Interest expense 8,360 5,133
Pre-tax (loss) income (14,819) (9,237)
Income tax (benefit) provision 48 29
Net income (loss) (14,867) (9,266)
General Partner's interest in net
(loss) income (297) (185)
Limited Partners' interest in net
(loss) income $(14,570) $(9,081)
Supplemental Information
Weighted Average Units Outstanding 23,387 19,859
Net Income (Loss) per Equivalent Unit ($.62) ($.46)
EBITDA(a) $1,710 $1,018
EBITDA per Unit $.07 $.05
Retail Gallons Sold 46,387 39,386
(a) EBITDA is defined as earnings before interest, income taxes,
depreciation and amortization. EBITDA should not be considered as an
alternative to net income (as an indicator of operating performance)
or as an alternative to cash flow (as a measure of liquidity or
ability to service debt obligations) and is not in accordance with nor
superior to generally accepted accounting principles, but provides
additional information for evaluating the Partnership's ability to pay
its Minimum Quarterly Distributions ("MQD").
Cornerstone Propane Partners, L.P.
Consolidated Balance Sheets as of September 30, 1999 and 1998
(Unaudited)
1999 1998
Current assets $130,590 $ 54,896
Property, plant & equipment, net 341,412 278,479
Goodwill, net 317,990 226,769
Other assets, net 36,444 20,767
-------- --------
$826,436 $580,911
Current liabilities $111,248 $ 52,240
Notes payable 417,252 260,321
Other non-current liabilities 6,570 4,313
Partners' capital 291,366 264,037
-------- --------
$826,436 $580,911
-0- Cornerstone Propane Partners, L.P. is a master limited partnership. The Partnership is the nation's fourth largest retail propane marketer serving over 460,000 customers with annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales of approximately 335 million retail gallons, doing business in 34 states through more than 300 customer service centers. Through its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. energy solutions service team, Coast Energy Group, the Partnership also supplies, purchases, processes and markets over 43,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. of natural gas liquids to resellers and major end users an average of approximately .8 Bcf per day in natural gas sales and 95,000 barrels per day in crude oil sales in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada. For more information, please visit Cornerstone's websites at www.cornerstonepropane.com and www.coastenergy.com. The information presented herein may contain certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the federal securities laws. The Partnership's actual future performance will be affected by a number of factors, risks and uncertainties, including without limitation, weather conditions, regulatory changes, competitive factors, the Partnership's success in dealing with the Year 2000 issues and the operations of vendors, suppliers and customers, many of which are beyond the Partnership's control. Future events and results may vary substantially from what the Partnership currently foresees, and there can be no assurance that the Partnership's actual results will not differ materially from its expectations. The Partnership undertakes no obligation to publicly release any revision to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statements or reflect the occurrence of anticipated or unanticipated events. |
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